SENATE BILL REPORT

SSB 5596

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to creating a special permit by a manufacturer of wine to hold a private event for the purpose of tasting and selling wine of its own production.

Brief Description: Creating a special permit for a manufacturer of wine to hold a private event for the purpose of tasting and selling wine of its own production.

Sponsors: Senate Committee on Commerce & Labor (originally sponsored by Senators King, Hewitt, Kohl-Welles and McAuliffe).

Majority Report: That Substitute Senate Bill No. 5596 be substituted therefor, and the substitute bill do pass.

Signed by Senators Baumgartner, Chair; Braun, Vice Chair; Hasegawa, Ranking Minority Member; Conway, Keiser, King and Warnick.

Background: The Liquor Control Board (LCB) issues a variety of special permits for selling, serving, and handling alcohol at specified events or to persons or entities who do not hold a liquor license. Many special permits are of limited duration for a specified purpose or event, or are issued for a purpose falling outside the commercial activities ordinarily engaged in by a licensee. For example, special permits are issued to allow for the consumption of liquor at banquets and to allow a manufacturer or distributor to donate liquor to delegates and guests at conventions and international trade fairs. Unless a fee is specified in statute, the fees for permits are generally established by LCB by rule.

Summary of Substitute Bill: LCB is authorized to issue a special permit to a wine manufacturer allowing a wine tasting and sales event at a specified location on a specified date. The event may not be open to the general public and the wine tasted or sold must be of the winery's own production. The permit must be obtained from LCB for a fee of $10 per event. The application for the permit must be submitted at least ten days prior to the event and the permit must be posted during the event.

Fiscal Note: Available.

[OFM requested ten-year cost projection pursuant to I-960.]

Staff Summary of Public Testimony on Original Bill: PRO: This bill will assist domestic wineries by allowing them to participate in selling wine at private events off the winery's premises. The industry is very competitive and this will be a good tool for small wineries to utilize. It would reduce the fiscal note on the bill if we did not require the permits to be purchased online.

Persons Testifying: PRO: Gaye McNutt, Cadence Winery – Owner, WA Wine Institute – Board Member; Ann Anderson, WA Wine Industry, Walter Dacon Wines – Owner.

House Amendment(s): Wine manufacturers are limited to hosting not more than 12 wine-tasting events per year that require the special event permit.